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Making an OfferProperty Information & Advice > Making an Offer |
You don't have to offer the asking price you, can offer less. A typical offer is 5% - 10% below the asking price. This would be appropriate if you think costly repairs need to be done and it is always worth noting what the current market trends are for that area. If your offer isn't accepted by the owners, you can make an increased offer. You can make as many offers as necessary on a property. A written offer will always be subject to contract. You, as a potential buyer, will not be committed to buying before you can find out more about the property's condition. An oral offer is not legally binding. Once your offer has been accepted, the following will have to be considered: Is a holding deposit payable? Mortgage arrangements must be made What type of survey is needed Who will be responsible for the legal work? Are you buying on your own or with someone else? Holding deposits are sometimes payable to the estate agent, once the owners have accepted your offer. It is usually in the region of £500 and indicates that you are serious about the purchase. If the sale doesn't go through, the deposit is refundable. if you haven't already arranged a mortgage, now is the time. The mortgage process should take about 3 weeks from the application stage to the formal offer being made, but this can vary. Lenders will generally want to get the property valued to ensure they will get their money back in the event of non-payment and the house having to be sold again. A surveyor will carry out the valuation on behalf of the lender but you the borrower will have to pay for this. Payment is normally made in advance, when the completed mortgage application form is sent to the lender. If the amount being borrowed is more than 75% - 80% of the property's value, the lender will require extra insurance to be taken out to cover the extra amount. This is called mortgage indemnity guarantee. It is a good idea to have an independent survey carried out in addition to any valuation. The survey will take into account the value of the property as well as examining the structure of the property, identifying any problems. Valuations do not look at such issues. There are two main types of surveys: Homebuyer's report - this is the best choice if the house to be surveyed is a conventional one, in reasonable condition and less than 30 years old. The survey looks for defects and urgent problems which are likely to effect the value eg woodworm. The aim of this report is to help you make an informed decision on whether or not to carry on with the purchase, to ensure the property is value for money and to know what decisions and actions are to be taken before exchanging contracts; Building survey / full structural survey - this is suitable for all types of properties by providing a full picture of the construction and condition. Because of the detail contained in this report, it is more expensive. This type of survey is especially appropriate for unusual properties, eg ones that have had major alterations, very old ones and properties bought for renovation, as serious structural repair may be needed. If the survey highlights any problems with the property, you must carefully consider your position. Do you want to go ahead with the purchase or re-negotiate the price? The surveyor will discuss with the extent of any problem and likely cost. |
Once you have found a property you like, get in touch with your solicitor / licensed conveyancer. They will contact the selling agent to note an interest in the property for you, or make an offer to the sellers estate agent.
